Foreign reserves drop to $32.61 billion

CBN governor, Olayemi Cardoso

Nigeria’s foreign reserves shed $1.8 billion in the last month, moving downward from $34.45 billion to $32.61 billion.  Data obtained from the Central Bank of Nigeria (CBN) did not state the factors responsible for the slide, which is the lowest in six years.

This comes as the national currency exchanged below the N1,000 mark for the dollar at the parallel market yesterday.  It is believed the CBN intervention in the value of the Naira as well as debt servicing may be responsible for the situation.

The last time the foreign reserve went under $33 billion was in 2017, lowering to $32.49 billion. However, the Acting Director of corporate Communications of the CBN, Sidi-Ali, Hakama, attributed the rise in the value of the Naira to the policies of the Yemi Cardoso-led management. She pointed to the increasing interest of foreign investors in government debt securities and an upsurge in Diaspora remittances.

Experts are insisting that Naira appreciation is a trade-off, citing funds that are needed for the stability of the currency. The devaluation of the Naira has led to the increment in the amount that is needed to service Nigeria’s debt, and with the costs of building materials and import duties on the rise in the last few weeks, the government dipping its hands in the reserves is expected.


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